Centennial Newstan must pay the $105,000 to Lake Macquarie Council in lieu of a fine, with the money funding environmental works in Stony Creek where the ‘‘dirty water’’ discharge occurred.

Up to 1.8 megalitres of sediment-laden water was discharged from a pipeline connected to the colliery’s old underground workings in August, 2008, the second such incident to occur at the site in three years.

The court heard up to 14.6 tonnes of sediment was discharged.

The discharge extended nearly 900 metres along an unnamed waterway and into Stony Creek, with sediment up to 20 centimetres deep in parts of a wetland recognised as an endangered ecological community.

The court heard Centennial Newstan responded quickly and immediately reported the incident to authorities.

But it was ‘‘not a case in which it could be said that there is nothing more that the defendant could have done’’, Justice Graeme Craig said yesterday.

‘‘While it is not a case of human error or failure to follow procedures, the offence occurred because of a failure to take precautions and implement systems which would have avoided commission of the offence,’’ he said.

‘‘The necessity for those engaged in mining activities to implement systems so as to ensure that water pollution does not occur is a message that needs to be given by the imposition of an appropriate penalty.’’

Centennial Newstan was ordered to pay $105,000 towards Lake Macquarie council’s environmental works in Stony Creek, another $38,500 in prosecution and investigation costs, and the cost of advertisements in the Newcastle Herald and its sister publication the Sydney Morning Herald acknowledging the pollution conviction and penalties.